The short-term outlook is bullish for VIP Industries. The stock surged over 6 per cent on Wednesday. The price action since October indicates a double-bottom formation. This strengthens the bullish case. Support is in the ₹645-640 zone. Below that the region around ₹630 is the next strong support. VIP Industries share price has potential to target ₹710 initially and then even ₹740 eventually in the next three-four weeks.
The region around ₹740 is a very strong support. As such the chances of a reversal from there are high. Traders can buy now. Accumulate on dips at ₹645. Keep the stop-loss at ₹625. Trail the stop-loss up to ₹665 as soon as the stock moves up to ₹675. Move the stop-loss further up to ₹680 when the price touches ₹695. Exit the long positions at ₹710.
(Note: The recommendations are based on technical analysis. There is risk of loss in trading.)